The Asian Development Bank (ADB) returned to the US dollar bond market yesterday with the pricing of a $2.0 billion 5-year global benchmark bond issue, proceeds of which will be part of the bank’s ordinary capital resources and used in its non-concessional operations.

The bonds, with a coupon rate of 1.75% per annum payable semi-annually and a maturity date of 11 September 2018, were priced at 99.456% to yield 18.55 basis points over the 1.5% US Treasury notes due August 2018.

The deal marks ADB's third global issue in the US dollar global bond market in 2013, having issued bonds with a 7-year maturity in January and a 3-year maturity in March this year.

As with previous ADB benchmark transactions, the issue achieved broad primary market distribution with 42% of the bonds placed in Asia, 38% in Europe, Middle East and Africa, and 20% in the Americas. By investor type, 56% of the bonds went to central bank and official institutions, 23% to fund managers, 17% to banks and 4% to other investors.

ADB plans to raise around $11 to $12 billion in the capital markets in 2013.

The Asian Development Bank ADB returned to the US dollar bond market yesterday with the pricing of a 2.0 billion 5-year global benchmark bond issue proceeds of which will be part of the bank’s ordinary capital resources and used in its non-concessional operations